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Temptation and Contribution in C2C Transactions: Implications for Designing Reputation Management Systems

  • Hitoshi Yamamoto
  • Kazunari Ishida
  • Toshizumi Ohta
Part of the Lecture Notes in Computer Science book series (LNCS, volume 3577)

Abstract

A reputation management system can promote trust in transactions in an online consumer-to-consumer (C2C) market. We model a C2C market by employing an agent-based approach. To discuss the characteristics of goods traded on the market, we define temptation and contribution indexes based on the payoff matrix of a game. According to the results of a simulation conducted with the model, we find that a positive reputation management system can promote cooperative behavior in online C2C markets. Moreover, we also find that such a system is especially effective for an online C2C market where expensive physical goods are traded, whereas a negative reputation management system is effective for an online C2C market where information goods are traded.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2005

Authors and Affiliations

  • Hitoshi Yamamoto
    • 1
  • Kazunari Ishida
    • 2
  • Toshizumi Ohta
    • 3
  1. 1.Faculty of Business AdministrationRissho UniversityTokyoJapan
  2. 2.Faculty of International Agricultural and Food StudiesTokyo University of AgricultureTokyoJapan
  3. 3.The Graduate School of Information SystemsUniversity of Electro-CommunicationsTokyoJapan

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